Expectations of a Federal Reserve rate hike have eased, and gold prices are expected to see their first weekly increase since May.

With traders lowering their expectations for the Federal Reserve to raise interest rates, gold is expected to record its first weekly gain since May. Weak US employment data and lower energy prices have caused investors to reduce their bets on monetary policy tightening, which usually creates a negative impact on non-yielding assets like gold. Bart Melek, head of global commodities strategy at TD Securities, said that the combination of falling energy prices and slowing job growth suggests that inflation pressures may ease in the coming months.